Best IPO looks to repackage Chinese logistics 7 Sep 2017 The Alibaba-backed group wants to list at a market value of $5 billion-plus. Best is growing fast and pushing into new businesses, but its core delivery operation still faces rising costs and fierce competition. A big premium to U.S.-listed rival ZTO is hard to justify.
Banks would be wise to tread carefully with HNA 7 Sep 2017 Goldman Sachs has halted pre-IPO work for a unit of the acquisitive Chinese group, Reuters says. That sounds prudent. China’s private M&A machines are out of favour in Beijing and under growing scrutiny abroad. A reshuffle meant to allay concerns about ownership did more damage.
Cheap data feeds Murdoch’s Indian cricket pitch 7 Sep 2017 Rupert Murdoch-backed Star India is paying $2.6 bln for IPL rights, outbidding new rivals like Facebook. The huge sum highlights the sport’s rapid rise and a rush to secure local content. Cheap mobile data could help lure the viewers and advertisers needed for this to pay off.
Hurricanes taunt Texas to put money where mouth is 6 Sep 2017 As Irma threatens Florida, the Lone Star State has $180 bln of Harvey damage to pay for. Most will come from the feds even though Texas hates big government. With low taxes, billionaires aplenty and a GDP that dwarfs the cost, minimizing D.C. aid ought to be virtually a state duty.
Brazil’s Temer gets a win as more graft oozes up 6 Sep 2017 Forcing state lender BNDES to cut back soft loans to business will shrink the government's role in the economy and help its ailing finances. New graft allegations against the president’s predecessors show how badly such measures are needed. Sometimes corruption can be his friend.
Facebook’s fuzzy math blurs its TV picture 6 Sep 2017 A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.
Nordea shows governments who rules the roost 6 Sep 2017 The Swedish bank is moving to Finland. The move will save $1.3 bln and lower capital charges, but the real winner is Europe’s regulator, which was the main draw. It’s a tangible demonstration that banks and investors want common rules, and a warning to governments that go it alone.
Fischer gives Trump freer rein over U.S. economy 6 Sep 2017 With the vice chairman leaving early and Chair Yellen’s term ending soon, the president can remake the Federal Reserve. His nominees will potentially make up a majority of Fed governors. That’s likely to speed the shift to a more conservative, less interventionist central bank.
Retailers’ credit-card life vest is over-inflated 6 Sep 2017 Macy's-branded plastic contributed nearly 40 pct of EBIT last year. At Kohl's and J.C. Penney, too, finance propped up profit. It's a quick fix at best for struggling U.S. mall tenants. They may find their credit-card partners pulling back as stores close and charge-offs rise.
Hadas: Good companies don’t have to self-harm 6 Sep 2017 Alphabet Chairman Eric Schmidt may be justified in not wanting to subsidise research critical of the web giant. Even so, powerful companies have serious social responsibilities. They can do better by expanding their mission, moderating greed and helping where they have hurt.
Record basketball price is timely bet on Houston 6 Sep 2017 The owner of the Landry's restaurant empire will pay $2.2 bln for the NBA's Rockets. Buying a trophy asset as the city rebuilds after Hurricane Harvey makes for awkward timing. And yet sports often unify a community and the big investment suggests abiding faith in a recovery.
“Angry Birds” maker preps dubious market catapult 6 Sep 2017 Rovio, known for the popular mobile game, is planning a Helsinki IPO. At a mooted $2 bln valuation it would struggle to defy gravity, as investors are effectively betting on one franchise. Like peers King and Supercell, the more logical end-point may be a sale to a larger group.
Draghi and Carney’s FX headaches have similar cure 6 Sep 2017 ECB chief Mario Draghi has too little inflation while the Bank of England’s Mark Carney has too much. Currency moves are compounding the problem for both central bankers. Their best hope of fighting unwanted shifts is to convince traders that policy will adapt to such swings.
EU’s antitrust creativity drive hits roadblock 6 Sep 2017 A case that slapped chipmaker Intel with a $1.3 bln fine has been punted back to a lower court. This is a blow for antitrust tsar Margrethe Vestager, who has tried to get as innovative in policing tech giants as the companies are themselves. Proving abuses will be harder.
Uzbek currency is experiment in controlled chaos 6 Sep 2017 The central Asian country has slashed the value of its currency by half. Such moves can hurt consumers and banks and trigger runaway inflation, but Tashkent has levers to limit the risks. While tough tests lie ahead, this is likely to be an example of virtuous devaluation.
China sets limits on fintech disruption 6 Sep 2017 A ban on crypto-currency initial coin offerings follows a similar U.S. crackdown. Like the SEC, Chinese regulators are trying to protect consumers and head off systemic risks. Keeping state control of a financial sector being eyed by Alibaba and others may be equally important.
China’s house rental push is past due 6 Sep 2017 Beijing wants more people to rent. Migrating from mortgages to leases could vent speculative pressure and put the critical property sector on a sustainable economic footing. Social customs and institutional interests will neutralise the initiative's effectiveness.
Lego slams into virtual wall 5 Sep 2017 The Danish toymaker is packing away 1,400 jobs after its decade-long sales boom faltered. Attaching itself to hit movies like "Star Wars" cemented strong growth, including from nerdy adults. As toy-market competition intensifies, Lego’s success requires an augmented-reality shift.
Guest view: Tax relief made for U.S. manufacturers 5 Sep 2017 President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.
Mort Zuckerman to newspaper industry: Drop Dead 5 Sep 2017 The NY property mogul sold the Daily News to the parent of the Los Angeles Times for $1 plus liabilities. It’s a victory of sorts for Tronc, which has lost other auctions and hovers near Gannett's takeover price. But it's another sad marker of print media's extinction.
Pirelli’s mooted IPO valuation looks overinflated 5 Sep 2017 The Italian tyremaker plans to relist. Pirelli’s high-end business may deserve a premium to peers, but an estimated enterprise value of 12 billion euros, far above what owner ChemChina paid in 2015, looks optimistic. High debt and complex ownership may also spook investors.
Nasdaq signals information is the real market 5 Sep 2017 The tech-heavy exchange is paying $705 mln for eVestment, a data provider to asset owners and managers. It’s pricey at over 16 times adjusted EBITDA. But CEO Adena Friedman sees more value in information that brings buyers and sellers together than in acting as a trade conduit.
United Tech breathes rarefied air to bulk up 5 Sep 2017 The conglomerate is paying $30 bln including debt for Rockwell Collins. The combination makes sense but, with a weak 5 pct return on investment, UTC is paying up for aerospace scale. Elusive revenue benefits or a lucrative breakup are needed to prove the deal's potential.
Bell Pottinger falls victim to PR disruption 5 Sep 2017 The UK public relations firm is in meltdown after a divisive South African campaign. The rise of online media makes it harder to justify big fees and spurs forays into far-flung markets. The result in this case is a warning to an industry that has so far shrugged off media woes.
Rebooted UK-French software merger rewards patience 5 Sep 2017 After two botched attempts in as many years, French industrial group Schneider and UK software maker Aveva are trying to hook up again. The $3.9 bln deal is as complex as it is financially alluring. With past glitches ironed out, the merger has a good chance of becoming reality.
Macron may be French unions’ new best friend 5 Sep 2017 The French president’s labour reforms will give firms more scope to bargain directly with their workers, rather than submit to industry-wide agreements. That will fan demand for training in employment law. The odd side-effect could be increased trade union membership.
Hong Kong’s fresh Aramco pitch is flawed 5 Sep 2017 Stock exchange boss Charles Li is pushing a "Primary Connect" scheme allowing Chinese punters to buy into listings in the city. The aim is to lure the bumper Saudi IPO with the prospect of a flood of retail money. But mainland investors have a better playground at home.
China setbacks spoil Australia’s dairy strategy 5 Sep 2017 Aussie farmers have tried to milk China’s growing hunger for infant formula. Rising incomes and the end of the one-child policy made the $19 bln market seem appetising. As often happens in the People’s Republic, intense competition and tough local rules have soured the outlook.
Japan Post’s second delivery calls for caution 5 Sep 2017 The group is set to sell nearly $13 bln of shares, in a follow-on to 2015’s blockbuster IPO. The stock looks cheap and pays a big dividend. But growth is mediocre and the shares have underperformed since the original listing. Investors should be able to push hard on price.
5-Star’s softer stance on euro is clever tactic 4 Sep 2017 The radical Italian party sees a referendum on euro membership as a last resort, one of its top lawmakers says. The apparent U-turn could help soothe markets and business before upcoming elections. There’s room to backtrack, but 5-Star is holding up and getting more nuanced.